Apple Takes a Bite Out of Buy Now, Pay Later
Will the quest for quick cash poison profits?
Fellow Medium writer Jano le Roux recently noted that tech behemoth Apple is joining the Buy Now, Pay Later game.
His piece notes the challenges the current players in the BNPL game will face when dealing with a giant like Apple. Basically, if you’re an Apple user paying with your phone, you can do it all right there — no need to access Klarna or Affirm or another provider. You pay on your phone, you borrow on your phone, you do it all from your Apple wallet. Seamless.
Also highly problematic.
I’ve written before about the risks and challenges presented by BNPL. Essentially, customers end up balancing multiple small loans with varying payment dates. The result can wreak havoc on a budget and a bank account. Plus, while there is often “no interest” if you make the payments as scheduled, missing a payment can carry significant fees.
One survey indicated that 1 in 5 consumers who used BNPL later regretted the decision.
